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Chapter 1

COMMERCE 1BA3 Chapter Notes - Chapter 1: Human Relations Movement, Western Electric, Bes

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Chapter 1 – Textbook Notes
Organizations are social inventions for accomplishing common goals through group effort
oThey are social inventions
oEssential characteristic is the presence of people
The field of organizational behavior is about understanding people and managing them to work effectively
oConcerned with how organizations can survive and adapt to change
oConcerned with how to get people to practice effective teamwork
Certain behaviors are necessary for survival and adaptation:
oMotivation to join and remain in organization
oCarrying out basic work reliably, in terms of productivity, quality, and service
oWilling to learn continuously and upgrade knowledge and skills
oBe flexible and innovative
Organizational behavior is the attitudes and behaviors of individuals and groups in organizations
Management is the art of getting things accomplished in organizations through others
The classical view and Bureaucracy:
oThis activity occurred mainly in the early 1900s
oClassical viewpoint is an early prescription on management that advocated high specialization of
labor, intensive coordination, and centralized decision making
oScientific management was Frederick Taylor’s system for using research to determine the optimum
degree of specialization and standardization of work tasks
Functional foremanship; supervisors would specialize in particular functions, e.g., one
would train workers, while one might fulfill role of disciplinarian
oBureaucracy was Max Weber’s ideal type of organization that included a strict chain of command,
detailed rules, high specialization, centralized power, and selection and promotion based on technical
It had the following qualities:
A strict chain of command in which each member reports to only a single superior
Criteria for selection and promotion based on technical skills
Set of detailed rules ensures that job gets done regardless of who worker is
Use of strict specialization to match duties with technical competence
Centralization of power at the top of the organization
Human Relations Movement (critique of bureaucracy)
oHawthorne studies was research conducted the Hawthorne plant of western electric near Chicago in
the 1920s and 1930s that illustrated how psychological and social processes affect productivity and
work adjustment
oHuman relations movement was a critique of classical management and bureaucracy that
advocated management styles that were more participative and oriented toward employee needs
oThe critique of bureaucracy addressed the following problems:
Strict specialization could lead to employee alienation
Strong centralization fails to take into account lower-level members who are often closer to
the customer
Strict rules lead members to adopt the minimum acceptable level of performance
Causes employees to lose sight of the overall goals of the organization
Contemporary Management – The Contingency Approach:
oContingency approach is an approach to management that recognizes that there is no one best way
to manage, and that an appropriate management style depends on the demands of the situation
Mintzberg’s managerial roles:
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